now here in california, amazon is building two giant warehouses. including this one near los angeles. it's a million square feet, and for old fashioned retailers, it's another reason to worry. why? because amazon's goal is to get items to customers faster and to be able to offer same day delivery. that's right. you can avoid stores if you want and have a package delivered to your house in a matter of hours. a win for consumers, but tough for local retailers. >> if amazon creates distribution centers and facilities on their turf locally, that takes away the one advantage that we see retailers have left to compete against amazon. so it is a big deal. >> reporter: internet analyst colin their game. >> retailers need to take a lesson from amazon. they need to focus on the consumer experience. they need to become more sophisticated both off line and online. >> reporter: those who want a lesson on how to thrive can learn from books inc in san francisco. >> we had almost everything that comes down the pike that could flatten the industry. >> in a tidal wa